"Stocks Poised for Correction, But Analysts Don't Predict Bear Market"
Ned Davis Research predicts a potential correction in global stocks due to excessive investor enthusiasm, but believes a bear market similar to 2020 and 2022 is unlikely. Despite record highs in various equity indexes, the macro outlook doesn't indicate significant inflationary pressures or economic weakness. While investor sentiment is exuberant, historical data suggests a potential pullback as sentiment eases. However, expanding market breadth and increased buying of underperforming stocks may help mitigate losses. Ned Davis Research remains bullish on stocks, recommending a 70% portfolio allocation to equities, despite recent market fluctuations.
